$119.98 is the SRP of the prize that can be redeemed. Regulations require that these prizes have a stated value.

They don't even sell a 12 month subscription for Game Pass. The options through the console/xbox.com are for 1 or 6 months with no discount. The payment method for a Game Pass subscription can be an existing Microsoft Account balance.

If you want to pay less you are better off buying Xbox Gift Cards for less than face value through sales, cashback offers and other methods than paying directly with a credit/debit card or paypal.

I would also suggest looking into setting up My Home Xbox with a family member or buddy and split the costs.

A discounted $99 for a yearly subscription would be nice. I'm sure there is already an existing UserVoice poll for this exact same request. I suggest you find it and vote.