For the second time in less than two weeks, Iowa (10-17 overall, 3-12) could have won it on a Bryce Cartwright on the final possession of regulation. For the second time in 10 days, the shot rimmed out.
Iowa attempted two 3-pointers at the end of overtime that could have tied the score.
"What you want in that situation is to feel like you have a chance," Iowa Coach Fran McCaffery said. "I thought Wisconsin we did. Overtime wasn't as good as we would have liked. Tonight was better. Just didn't go in."
Basabe paced Iowa with 19 points and eight rebounds. Senior Jarryd Cole added 14 points and six boards in the losing cause.
Michigan outscored Iowa 23-10 in point off of turnovers. The Hawkeyes gave it away 16 times against 15 assists.
Iowa won the battle of the boards, 36-27, and outscored the visitors 40-30 in the paint. But the Hawkeyes struggled to contain the Michigan backcourt of Tim Hardaway Jr. and Darius Morris who scored 30 and 20 points, respectively.
"I think he's one of the best players in our league," McCaffery said of Hardaway.
Michigan improved to 17-11 overall and 7-8in the league. The Wolverines kept their tenuous NCAA Tournament hopes alive.
"Iowa…I love what Fran is doing with this team," Michigan Coach John Beilein said. "I love what they're doing. We just made one more shot than they did today."
The Hawkeyes return to action at Illinois on Feb. 26.