Do insurance companies no longer cover sharps containers for used insulin syringes?

I have a friend who is in a desperate housing situation. She found a guy who is willing to rent a room to her. She noticed some syringes in the house. She asked about them and he said that he was diabetic. She asked about a sharps container. He told her the VA does not cover those any more and that he was told to put them in a used Gatorade bottle and throw it in the trash. I think that's bullshit. But... on the very slim chance that's correct I thought I would ask here among the folks who would know about that stuff. Thank you for reading this.

Edit: She is a new mom with a 6 week old baby. Being around someone with diabetes is fine. Being around a junkie who is lying about being a diabetic is a disaster waiting to happen.