Yes you will need to apply separately to the schools of your choosing. The main benefit of sending the scores is you then don't have to pay the $10 additional fee when requesting the scores be sent individually after your exam day. Basically you get 5 scores included in your initial exam fee and anything after that you have to pay the additional $10 fee for.
I think the general consensus is to send the scores to whatever schools you are targeting; some people erroneously believe they should send the exam scores individually after the fact in case they score poorly during the exam. Since whatever schools you ultimately decide to apply to will have full access to your exam history; they will be able to see all your scores, including the ones you may have not sent to anyone due to a poor score. Since, generally speaking, most schools only take your highest score into account, my advice would be you may as well roll the dice and submit your score to whatever programs you are targeting during test day to avoid any additional expense.
Hopefully that helps.