That particular switch has two sets of contacts.  

One set of contacts is closed when the button is not pushed in.  That set controls power to the headlight.  It turns off the light during the "start" operation to reserve more power for ignition and starter motor etc.  So, when the button is pushed in, those contacts open.

The other set is closed when the button is pushed in.  That set connects power to the starter system.

Make sure you are checking continuity across the correct set of contacts.  When the contacts are closed, they should read zero ohms (or very close to zero).  Your reading (199 ohms) is way too high.