Medicaid Substance Abuse Treatment Act of 1997

Medicaid Substance Abuse Treatment Act of 1997 - Amends title XIX (Medicaid) of the Social Security Act to provide federally reimbursed Medicaid coverage of alcoholism and drug dependency residential treatment services for pregnant women whose family income is below 185 percent of the Federal poverty level and for their Medicaid-eligible children and spouses. Lists the required services included in such coverage.

Requires that such coverage continue for at least 12 months, except in certain circumstances, such as where the coverage of pregnant women must continue for one year following the end of pregnancy.

Limits the size of a residential treatment facility. Allows a State agency to grant exceptions to such limit. Prohibits the facility from being licensed as a hospital. Caps the number of nationwide beds for which Federal assistance may be provided under such residential treatment programs. Increases such annual bed cap for calendar years 1998 through 2002.

Addresses treatment needs of pregnant addicted Indian and Alaska Native women in Indian Health Service areas.