Children's Health Insurance Provides Security (CHIPS) Act of 1997

Children's Health Insurance Provides Security (CHIPS) Act of 1997 - Amends title XIX (Medicaid) of the Social Security Act to offer States which have Medicaid plans that provide for the following an enhanced Federal match: (1) Medicaid coverage of pregnant women under age 19, infants, and children with family income between 133 and 150 percent of the poverty line regardless of date of birth; and (2) continuous eligibility for them for a period of 12 months. Gives States the option to expand Medicaid eligibility to 150 percent of the poverty line for children over one year of age.

Prohibits any employer which elects to make employer contributions on behalf of an individual who is an employee of such employer, or who is a dependent of such employee, for health insurance coverage from conditioning, or varying, such contributions with respect to any such individual by reason of such individual's status as a Medicaid-eligible individual. Provides that an employer shall not be treated as failing to meet such requirements if the employer ceases to make employer contributions for health insurance coverage for all its employees. Makes the enforcement provisions applicable to group health insurance coverage under amendments made by the Health Insurance Portability and Accountability Act of 1996 applicable with respect to an employer that violates this paragraph in the same manner as this paragraph applies to employers under such amendments.

Authorizes appropriations to the Secretary of Health and Human Services for grants to States, localities, and nonprofit entities to promote outreach efforts to enroll eligible children under Medicaid and related programs.