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 an enhanced Federal match to States with Medicaid plans that provide for: (1) coverage of pregnant women, infants, and children under age six with family income between 133 and 150 percent of the poverty line, as well as older children with family income between 100 and 150 percent of the poverty line; and (2) continuous eligibility for a 12-month period for children under any age the State specifies (up to age 19). Gives States the option to: (1) expand Medicaid eligibility to 150 percent of the poverty line for children over one year of age; and (2) extend coverage to all children under age 19.

Prohibits any employer which elects to make employer health insurance contributions on behalf of an employee (or dependent) from conditioning, or varying, such contributions with respect to any such individual by reason of his or her eligibility for Medicaid.

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.