I currently have iCloud and all my images there. with this change do I need to save all my images? Will I still have to pay for iCloud?

If you are currently using iCloud Photos, there is no change to that and you will need to continue paying for your storage plan if you are using more than 5GB of iCloud space. See: Set up and use iCloud Photos - Apple Support

If you are using My Photo Stream (the service that is being discontinued), those photos have never counted toward your iCloud storage so discontinuing it would not reduce the storage you use. Following is a short description of My Photo Stream from My Photo Stream - Apple Support

My Photo Stream uploads your most recent photos (except Live Photos) so that you can view and import them to another device, if you like. Photos are stored in My Photo Stream for 30 days and then are deleted from iCloud. 

The following support article has information about the discontinuation of My Photo Stream and the steps you should take if you are currently using it. Information about the My Photo Stream shutdown - Apple Support