Bluetooth Module with Analog Input
To read a button press does not require an analog input. A module like the BLE 112 has several "general purpose I/O pins" (referred to as GPIO) so you can read the button via one of these digital pins.

Almost many Bluetooth modules do not allow you to run code on them, the BLE is one that does.  So you can upload your own firmware into BLE, scan the GPIO pin for a button press (and also account for the switch bounce).

BTW there is no way this is going to cost $30,000 unless the quote included the design and cost of a mold for a plastic case and band, and even that sounds high -- should be more like $10,000 or so.

The cost of doing the electronics and firmware should be anywhere from $500 to $1000 (very rough estimate), and you would probably also need a flexible PCB designed (couple thousand dollars maybe).  This does not include the cost of doing an iPhone or Android app.

So if you include the mold, electronics/firmware/PCB, and smartphone apps I guess you could be getting up close to $30,000.  But as you can see the firmware/electronics design is a very small part of that.