  We model the reflected spectrum expected from localized magnetic flares above
an ionised accretion disk. We concentrate on the case of very luminous magnetic
flares above a standard accretion disk extending down to the last stable orbit,
and use a simple parameterisation to allow for an X-ray driven wind. Full disk
spectra including relativistic smearing are calculated. When fit with the
constant density reflection models, these spectra give both a low reflected
fraction and a small line width as seen in the hard spectra from Galactic Black
Hole Binaries and Active Galactic Nuclei. We fit our calculated spectra to real
data from the low/hard state of Nova Muscae and Cyg X-1 and show that these
models give comparable $\chi^2$ to those obtained from the constant density
reflection models which implied a truncated disk. This explicitally
demonstrates that the data are consistent with either magnetic flares above an
ionized disk extending down to the last stable orbit around a black hole, or
with non-ionized, truncated disks.
