An electric motor will draw whatever power it needs for its load, up until it stalls. So it's possible for a 200 watt motor to draw more than 200 watts. And since most motors operate at less than unity power factor, the volt-amps will be greater than the watts. That said, if a 1/4 horsepower 120 volt motor is drawing over 8 amps, something is wrong. Power factor alone isn't sufficient to account for a 1/4 hp motor drawing nearly one kVA.
Electric meters measure watts, not volt-amps. So in general a low power factor won't cost you extra.
I2R losses are calculated by actual current. You can't reduce I2R losses inside the motor by correcting for power factor (e.g. by adding a PF correction capacitor), because the power factor of the motor is unchanged; only the power factor presented to the power source is changed.